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  • Questions: 120 Q&A's With Detailed Explanation
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  • Exam Name: Managing Contractual Risk
  • Last Update: 02-Nov-2024
  • Questions and Answers: 120
  • Single Choice: 106 Q&A's
  • Multiple Choice: 14 Q&A's

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L5M3 Questions and Answers

Question # 1

Sarah is a baker and orders free-range eggs from a local supplier which she uses to make cakes. There is a contract in place which included a specification that states that the eggs must be free-range. One day the supplier delivers eggs which Sarah uses in the cakes. Later she dis-covered that these were not free-range. Sarah believes that the supplier has broken the con-tract. Is this true?

A.

Yes- this is a breach of a condition

B.

Yes- this is a fundamental breach

C.

no- the specification is not a contract document

D.

no - there has been a breach in a warranty

Question # 2

Which of the following will you put into box 4?

A.

anticipatory breach

B.

fundamental breach

C.

payment terms

D.

specification

Question # 3

Which of the following conflict resolution styles may involve a private caucus and a joint ses-sion?

A.

mediation

B.

adjudication

C.

negotiation

D.

litigation

Question # 4

A buyer and supplier have a contract and the supplier has committed a major breach. However, as they are the sole supplier to the buyer, the buyer has decided not to terminate the contract and instead to work with the supplier to remedy the situation. What is this called?

A.

affirmation of the contract

B.

conflict resolution

C.

awarding damages

D.

assigning liability

Question # 5

Which of these is NOT a stage in negotiation?

A.

proposal

B.

agreement

C.

bargaining

D.

adjourning

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